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View Full Version : Lax based and Cali taxes


FlyyGuyy
12-26-2018, 07:05 AM
For anyone who commutes to lax from out of state how does California handle your taxes? I am under then impression that California wants you pay taxes because you're based there, is this correct?


Pilotman520
12-26-2018, 08:25 AM
Not exactly. They will force you to pay the ca disability however no state taxes are withheld or required because we are involved in inner state commerce.

PRS Guitars
12-26-2018, 09:14 AM
Iíve read on here if you fly more than 50% in CA you pay. You will not come close to that at AA. They donít take CA income tax from me.

You will pay CA disability at a rate of about .9% until you reach the cap of $1,149. If you go out on LTD my understanding is the company will reduce your benefits by 5he amount paid to you by CA, so it has no value to you.


A330FoodCritic
12-26-2018, 10:06 AM
...If you go out on LTD my understanding is the company will reduce your benefits by 5he amount paid to you by CA, so it has no value to you.

Just gotta love the APA negotiators. :rolleyes::rolleyes::rolleyes:

FlyyGuyy
12-26-2018, 11:51 AM
Great. Glad to know this. Thank you for the information.

TransWorld
12-26-2018, 12:19 PM
Not exactly. They will force you to pay the ca disability however no state taxes are withheld or required because we are involved in inner state commerce.

I believe it is interstate (between states) commerce. Inner state is within one state (like flying between LAX and SFO).

ipdanno
12-26-2018, 01:55 PM
California does want to tax your income in that scenario. It usually doesnít happen right away, but the Tax Board, when it determines you are based in the Peopleís Republic, may send you a letter demanding back income tax.

As previously stated, if less than 50% of your flying is in/above California, you donít owe income tax. But if you received The Letter, you have to prove you are not obligated. Otherwise they will pursue the matter.

Your Flight Ops or Payroll department can usually draft a letter that works. Sometimes you may need to produce flight logs showing you departed a Cali base but flew out of state during your pairing.

Surprise
12-27-2018, 04:45 AM
Inner state is within one state (like flying between LAX and SFO). If you really want to split hairs that would be intrastate.

FlyyGuyy
12-27-2018, 05:31 AM
California does want to tax your income in that scenario. It usually doesnít happen right away, but the Tax Board, when it determines you are based in the Peopleís Republic, may send you a letter demanding back income tax.

As previously stated, if less than 50% of your flying is in/above California, you donít owe income tax. But if you received The Letter, you have to prove you are not obligated. Otherwise they will pursue the matter.

Your Flight Ops or Payroll department can usually draft a letter that works. Sometimes you may need to produce flight logs showing you departed a Cali base but flew out of state during your pairing.

This is what I was expecting to happen. Thank you.

TransWorld
12-27-2018, 10:42 AM
If you really want to split hairs that would be intrastate.

Yes, but I was quoting “Inner State”, the incorrect word from above. I should have quoted “Inner State” [sic].

symbian simian
12-27-2018, 05:02 PM
Yes, but I was quoting ďInner StateĒ, the incorrect word from above. I should have quoted ďInner StateĒ [sic].

you have more patience than I.

drinksonme
12-28-2018, 12:53 PM
Iíve read on here if you fly more than 50% in CA you pay.

Make them prove that. They backed down as soon as told them that some years ago.

iahflyr
12-31-2018, 10:28 AM
You will not come close to that at AA. They donít take CA income tax from me.

You will pay CA disability at a rate of about .9% until you reach the cap of $1,149.

Correct. You do not owe state income tax in California. Just the 0.9% up to a maximum of $1149 a year for disability insurance. If you get disabled, you are protected. Also you can take time off to care for a sick loved one, you will receive a payout.

You used to be able to write this off, but under the new tax reform law, that counts against your SALT cap, so most people are not able to write it off anymore :(

DarkSideMoon
12-31-2018, 10:32 AM
For anyone who commutes to lax from out of state how does California handle your taxes? I am under then impression that California wants you pay taxes because you're based there, is this correct?

If Iíve learned one thing in aviation, do not take tax advice from pilots. Talk to an accountant, preferably one that works with pilots on a regular basis.

FlyyGuyy
12-31-2018, 02:52 PM
If Iíve learned one thing in aviation, do not take tax advice from pilots. Talk to an accountant, preferably one that works with pilots on a regular basis.

So far the accountants I know don't know anything about California so I figured I would pose the question here.



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